Talkmore Gandiwa
Chengetedzai Depository Company said it is now finalising the launch of Securities Lending and Borrowing (SLB) which will broaden and widen its product offering.
SLB is the temporary transfer of shares from one party (the lender) to another (the borrower) at an agreed fee, with a formal agreement to return the shares either on demand or at a future agreed date.
CDC chief executive Prosper Mutorogodo told finx that the SLB will be introduced on the system before the close of the second quarter. “Work on rolling out the securities lending and borrowing is at the final stage and participant training will be carried out in a few weeks’ time to facilitate the rollout.”
Apart from the equities clearing which is already on the market, the company is set to introduce more products on the market before 31 December 2024, which are now at different stages of licencing with the Securities and Exchange Commission of Zimbabwe.
Some of the products also include an unclaimed shares owners’ identification process which will be partly automated.
